May 2011 saw uneven developments in the cost of new borrowing by non-financial corporations, both for small loans and for loans of over €1 million. For example, the interest rate on new loans over €1 million with a floating rate or an initial rate fixation period of up to three months decreased by 7 basis points from the previous month to stand at 2.65%. This month-on-month decrease was driven by developments in the interest rates applied in the various euro area countries as changes in interest rates (the 'interest rate effect') outweighed changes in the corresponding weights (the 'weight effect'): 5 and 3 basis points respectively. The corresponding rate for new loans of the same size with an initial rate fixation period of over ten years remained basically unchanged at 4.12% in May 2011. In the case of new loans up to €250,000 with a floating rate and an initial rate fixation period of up to three months, the average rate charged increased by 11 basis points to stand at 4.18%. This month-on-month change was driven by developments in the interest rates applied in the various euro area countries. As regards new deposit agreements, the interest rate on deposits from non-financial corporations with an agreed maturity of up to one year rose by 7 basis points to stand at 1.65% in May 2011 (having stood at 1.58% in April).
Most significant MFI interest rates on new business loans to sole proprietors and unincorporated partnerships:
The interest rate on new loans to sole proprietors and unincorporated partnerships with a floating rate or an initial rate fixation period of up to one year rose by 22 basis points to stand at 3.75%. This increase was driven by developments in the interest rates applied in the various euro area countries.
Most significant MFI interest rates on new business loans to, and deposits from households:
In May 2011 the interest rate on new loans to households for consumption with a floating rate and an initial rate fixation period of up to one year rose by 18 basis points to stand at 5.35%. This was driven by developments in the interest rates applied in the various euro area countries. The cost of new borrowing by households showed uneven developments with regard to housing loans in the same period. The interest rate on loans for house purchases with a floating rate and an initial rate fixation period of up to one year increased by 10 basis points to stand at 3.22% in May 2011. Moreover, the interest rate on loans with an initial rate fixation period of over ten years remained basically unchanged at 4.18% in May 2011.
Rates agreed on new deposits from households showed uneven developments. The interest rate on deposits with an agreed maturity of up to one year rose by 5 basis points to stand at 2.52%. Moreover, the interest rate on deposits redeemable at three months’ notice remained basically unchanged at 1.67% in May 2011.
